The "lurking evil" is within each character and whatever you decide is going on with them. And if they clash with other characters, etc. The external conflict we have in the town is currently just the expansion and invasion of new people that are disrupting the small town life. And each players character will provide color to the town.

Obviously I am not talking about someone who grows to like spicy food... Character personalities need to have depth to them and this RP requires you to interact with other players and create interesting storylines between them.